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Although India probably obtains a waiver from the sanctions imposed by the United States for the importation of Iranian oil, the country should also benefit from waiver conditions according to which Iran would not gain no money on any import.
India may benefit from it. According to experts, Tehran's import insurance, foreign exchange savings, logistics and other benefits arising from the bilateral trade terms being developed.
US economic sanctions against the Persian Gulf nation come into effect today. India, the main importer of Iranian crude oil, will probably be allowed to continue to import Iranian crude, although its terms are modified.
Deepak Mahurkar, a partner and leader of PwC India's oil and gas industry division, said the revised crude oil purchase conditions being negotiated with Iran include rupee-denominated exchanges, where the republic Islamic would give badurance of Indian imports at a price comparable to that of oil purchased by Indian refiners.
According to him, most of the gains made by India would be "non-monetary".
Trade between India and Iran would require a payment in rupees from the UCO Indian bank, which is not exposed to the international and therefore is at the time. protected from sanctions. A striking amendment to the previous agreement is that all Iranian crude oil imports would be expressed in rupees and that Iran should use this amount for imports from India.
Thus, India would be able to supply oil despite the banned Iranian banks. payment system of the Society for Worldwide Interbank Financial Telecommunications.
"India will be allowed to make rupee payments, which will be deposited in a bank account and Iran will use them for imports from India If you import (India) $ 100 of crude oil In Iran, the revenue generated will be transferred to a UCO Bank account, which will be used by Iran for imports from India, and thus an import guarantee in India. " PwC energy.
Ganesh Kumar Gupta, President of the Federation of Indian Exporters Organizations (FIEO), also believes that the United States waiver and the new bilateral trading conditions put in place will help Indian exporters and importers 'Iran. a crude.
"This will boost exports, which is what we advocate.If bilateral trade is allowed, Iran can sell crude oil to India and India can sell it agricultural products and If foreign exchange trading is not allowed, at least bilateral trade will be able to support exports, which will significantly boost Indian exports to Iran, "he told DNA Money.
"The relief for India is not in monetary terms, we will get crude at benchmark prices, so it's not an economy." an economy in spending in foreign currency; it's a guarantee on exports and a logistics facility, in terms of contracts of new sources of crude.Nothing of all this has to do with savings from These are all non-monetary benefits that will, in a way, help to control India's trade deficit, "said PwC's executive.
Gupta estimated that there could be a 20-25% jump in Iranian exports under the new bilateral agreement. trade regime between India and Iran.
"If there is a bilateral trade and in exchange for crude, the Iranian government pays Indian rupee payments to Indian exporters, there may be a 20 to 25 percent jump in exports to India. Iran".
Providing data, he said that Indian exports to Iran in the last fiscal year accounted for a meager $ 2.5 billion, less than 1% of India's total exports, which rose to about $ 302.8 billion. – When the rupee trade with the Persian nation existed – Iranian imports from India accounted for about $ 5 billion, or 2 to 2.5% of total exports of the year.
Gupta expects Iranian imports to "double" under revised trade standards.
"If bilateral trade in rupees is allowed (between India and Iran), we can then double (exports to Iran)." Until now, no official announcement has been made. been made (by the United States), only discussions are underway, but I hope this will be confirmed.It will also be a welcome initiative for importers of crude oil (Indian refineries). ) ", did he declare.
Mriganka Jaipuriyar, badociate editor at S & P Global Platts, believes that Iranian crude is particularly attractive to Indian refiners because it is more "competitive" comparable ".
In addition, the ability to pay in rupees, a traditional payment mechanism existing since the imposition of previous sanctions in 2012, would also be a pause for India when its currency has reached new heights, "that alleviates the country's foreign exchange reserves ".
According to him, Iran Heavy is one of the most competitive acidic qualities available to Indian refiners. [19659002] "Calculations by S & P Global Platts indicate that Iran Heavy shipments to the west coast of India averaged $ 76.10 per barrel in October, compared to $ 80.11 per barrel for the Saudi Arabian medium.The American reference "Mars" has averaged 78.99 US dollars per barrel on the west coast of India, "said S & P badyst. 19659002] India is expected to benefit from a 180-day exemption from the sanctions imposed by the United States on Iranian oil, which was reimposed in May this year by the Trump administration until 39. to Sunday this month after Washington's withdrawal from the nuclear deal in 2015.
"India got the waiver only because it's a friendly country." The last fiscal year Iran's financial resources were covered by almost 10% of India's gross demand (220.4 million metric tons).
According to estimates by the Organization of the Petroleum Exporting Countries (OPEC), which contributes about 40% of world production, world demand is expected to increase by 33%, or 91 million barrels of oil equivalent per day (Mboed). between 2015 and 2040. Of this figure, it is likely that growth of 24%, or 22 million barrels, will come from India.
GAINS IN TIMES OF CRISIS
- India could gain in terms of import guarantee, currency savings, logistics and other benefits from bilateral trade with Iran
- L To provide Indian oil watch insurance for oil purchased by Indian refiners
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